Research On Optimization Model For Suzhou’s Agricultural Insurance Fiscal Subsidies

Agricultural sector plays an important role in the national economy, providing resources for human supply and raw materials for other sectors of the national economy. Agricultural production is also facing a lot of risk, in particular the occurrence of natural disasters, which seriously threat to the sustainable development of agriculture. Agricultural insurance is an important mechanism dealing with agricultural non-systemic risk. In developed countries. Agricultural insurance is an important component in the system of the rural economy and plays an important role in the stability of rural society and to provide financial stability to farmers.At present, China’s agricultural insurance has not yet formed a matural subsidy model, for the lack of intervention which are made by governments to facilitate agricultural insurance.Through the last years of practical experience, fully commercial management of agricultural insurance did not work well. the development of agricultural insurance needs government provide fiscal subsidies so that fiscal subsidies of agricultural insurance has gain a widespread concern resently. Although the government has tried hard to optimize model and increase efficiency, a stable mechanism of fiscal subsidies for agricultural insurance has not formed and the legal and regulatory framework for agricultural insurance have not introduced at present. So it is important to study optimization model of fiscal subsidies for agricultural insurance which suits the respective region.Based on a comprehensive literature review on agricultural Insurance, this thesis has compared the concepts of agricultural insurance and agricultural insurance subsidies and analyzed from multiple perspectives the reasons government subsiding agricultural insurance. This thesis describes in detail the implementation of agricultural insurance subsidies in Suzhou, with an analysis of the achievements and problems. Several main agricultural insurance fiscal subsidies experiences in developed countries are also considered. This thesis explores the factors that affect the agricultural insurance and designs the optimization model of fiscal subsidies for agricultural insurance, by the Analytic Hierarchy Process to establish a healthy and sustainable policy-driven agricultural insurance scheme. In this thesis, we also provide some suggestions on how to develop the agricultural insurance in China.